Sawmills and Wood Preservation


Buy Now For $185
View Sample Report Recent Developments

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,600 sawmills and wood preservation companies in the US produce and treat a variety of wood products, including structural elements and dimension lumber. Major revenue categories include softwood lumber, hardwood lumber, preserved wood products, and wood chips. Sawmills may provide wood preservation services as a final step of production. Some large companies are vertically-integrated and own timberland or downstream operations, including divisions involving real estate ownership and residential construction.

Sensitivity To Economy And Construction Activity

Demand for wood products is highly dependent on the health of the construction and household furniture industries, both of which are sensitive to economic conditions.

Variable Timber Costs And Supply

The cost and supply of timber can be volatile, and affect margins and profitability for sawmills and wood preservation services providers.

Industry size & Structure

The average sawmill and wood preservation firm operates out of a single location, employs about 35-36 workers, and generates $18 million annually.

    • The sawmill and wood preservation industry consists of about 2,600 firms that employ 91,600 workers and generate $47.8 billion annually.
    • Sawmills account for 90% of firms and 78% of industry revenue.
    • The sawmill industry is fragmented; the top 50 companies account for 53% of industry revenue. The wood preservation industry is concentrated; the top 50 companies account for 85% of industry revenue.
    • Large companies with sawmill operations include Weyerhauser Company and PotlatchDeltic Corporation. Large companies that provide wood preservation services include Koppers Holdings, and Pacific Wood.
    • Some large companies are vertically-integrated and own timberland or downstream operations, including divisions involving real estate ownership and residential construction.
                                  Industry Forecast
                                  Sawmills and Wood Preservation Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jul 25, 2024 - Home Bulder Confidence Drops
                                  • Home builder confidence in the single-family market dropped in July to the lowest level since December 2023 amid high mortgage rates and elevated builder financing costs, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell one point to 42 in July 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 31% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged for the thirteenth consecutive month. New home sales are a key driver of appliance demand.
                                  • The sawmill and wood preservation industry is expected to see weaker sales growth this year, and growth over the next several years will be flat. The industry’s year-over-year sales increased by 5.5% in 2022 before dropping to 3.5% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to moderate further to about 2.8% in 2024, then rise to 3.5% in 2025. The industry will then see steady but mostly flat average annual growth of about 3.8% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
                                  • Sawmill production, capacity utilization, and employment all declined in the first quarter of 2024, according to US government data. The US production index for sawmills and wood preservation declined 4.3% in the first quarter of 2024 from the same period in 2023, according to the US Census Bureau. Sawmill and wood preservation capacity utilization fell 0.4 percentage points to 60.4% over the same period. Between the first quarter of 2023 and Q1 2024, sawmill employment fell from 93,130 to 89,260, according to the US Bureau of Labor Statistics. Weaker production, utilization, and employment may suggest that softness in the US housing market has slowed demand for sawmill products.
                                  • New single-family home sales fell 0.6% month-over-month and 7.4% year-over-year in June 2024, according to the US Department of Commerce. The June drop in new home sales marked a seven-month low as high mortgage rates and home prices weaken demand for new homes, according to Reuters. The median new home sales price in June was $417,300, up 2.5% from May 2024 but the median new home price was down 0.7% year-over-year. To attract buyers, builders are reducing home sizes to make them more affordable while offering discounts and other incentives.
                                  Get A Demo

                                  Vertical IQ’s Industry Intelligence Platform

                                  See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                  Build valuable, lasting relationships by having smarter conversations -
                                  check out Vertical IQ today.

                                  Request A Demo